New report shows that while ‘Fix the Debt’ executives call for cuts to Social Security, Medicaid, and more, they continue to benefit from subsidized pay

Washington, D.C. — Ordinary taxpayers are subsidizing exorbitant executive pay at the corporations leading the push for austerity in the budget debate, according to a new report by the Institute for Policy Studies and Campaign for America’s Future.

The report is the first to put a price tag on the tax breaks specific corporations have enjoyed from a loophole that allows unlimited deductions for executive stock options and other “performance-based” pay. It focuses on corporate members of Fix the Debt, a lobby group that is calling for “shared sacrifice” while quietly advocating for cuts to Social Security and more corporate tax breaks.

Among the key findings from the report ‘Fix the Debt’ CEOs Enjoy Taxpayer-Subsidized Pay:

• The 90 publicly held corporate members of the ‘Fix the Debt’ lobby group raked in at least $953 million — and as much as $1.6 billion — from the “performance pay” loophole between 2009-2011.

• UnitedHealth Group enjoyed the biggest taxpayer subsidy for its CEO pay largesse during this period. The nation’s largest HMO paid CEO Stephen Hemsley $199 million in total compensation, of which at least $194 million was fully deductible “performance pay.” That works out to a $68 million taxpayer subsidy – just for one individual CEO’s pay. A just-released proxy reveals that Hemsley pocketed another $28 million in “performance pay” in 2012, which computes into a tax break for UnitedHealth of nearly $10 million.

• Discovery Communications stood next in line for a government handout. CEO David Zaslav pocketed $114 million in total compensation, $105 million of this in exercised stock options and other fully deductible “performance pay.” That translates into a $37 million taxpayer subsidy.

• Caesars Entertainment has hemorrhaged money in recent years, driving CEO Gary Loveman’s stock options underwater. Despite his poor performance, Loveman has managed to take home $9.6 million in cash bonuses, generating taxpayer subsidies the firm can cash in to lower its taxes in years to come.

“These CEOs are raking in huge taxpayer-funded bonuses at the same exact time they’re insisting on deep cuts in the government programs that benefit ordinary Americans,” said Sarah Anderson, a report co-author and Global Economy Project Director at the Institute for Policy Studies.

“If Fix the Debt’s CEOs really wanted to fix the debt, they wouldn’t be lobbying for lower tax rates – even as they take advantage of tax loopholes that allow their companies to pay them incredibly lavishly,” said Roger Hickey, co-director of the Campaign for America’s Future. “This study shows that Fix the Debt’s CEOs have gotten huge tax breaks, which calls into question their legitimacy. Clearly they want austerity for hard working Americans, but no sacrifices at all for CEOs.”

Institute for Policy Studies (IPS-DC.org) has conducted path-breaking research on executive compensation for 20 years. The 2012 edition of their annual Executive Excess report received significant media coverage, including in the Wall Street Journal and New York Times. IPS has also produced detailed analyses of the tax and executive retirement policies of Fix the Debt member corporations.

The Campaign for America’s Future (CAF) is a center for ideas and action that works to build an enduring majority for progressive change. The Campaign advances a progressive economic agenda and a vision of the future that works for the many, not simply the few. The Campaign is leading the fight for America’s priorities – for good jobs and a sustainable economy, and for strengthening the safety net.

The Campaign for America's Future (CAF) is a center for ideas and action that works to build an enduring majority for progressive change. The Campaign advances a progressive economic agenda and a vision of the future that works for the many, not simply the few. The Campaign is leading the fight for America's priorities - for good jobs and a sustainable economy, and for strengthening the safety net.

Trade Policy Needs A “Root-To-Branch” Reassessment Campaign for America’s Future Calls For A National Commission To Forge A New Globalization Strategy Washington – Campaign for America’s Future Co-Director Robert Borosage today called on the Obama administration […]

MAY JOB FIGURES: NO CHANGE Statement from Robert Borosage of the Campaign for America’s Future: Washington, DC — “In a statement released today on the May jobs report, Robert Borosage, co-director of the Campaign for […]

Jobs Numbers Show More Needs to be Done to Get Americans Back to Work Washington, DC -- The Campaign for America’s Future’s co-director Robert Borosage said that today’s jobs numbers from the Bureau of Labor Statistics of 120,000 new jobs shows that while we are heading in the right direction, much more needs to be done to assure a full recovery that includes Americans getting back to work at jobs that pay a living wage.

Bank Deal: A Beginning, Not an End Washington, DC – Robert Borosage, co-director of the Campaign for America’s Future, commented on the much-anticipated settlement deal with the banks regarding mortgage fraud.

No Sweetheart Deal For Big Banks Washington, DC – Progressive groups are uniting today to send a strong message to the White House that bankers who commit fraud ought to be investigated, prosecuted and sent to jail.

Jobs Report Shows Action Needed to Spur Hiring Washington, DC – Official job numbers released today by the Labor Department show that while employment continues to grow, without stronger policies to spur economic growth and job-creation, it will be many years before the US economy comes anywhere near full employment.